We had a flood in our city this summer back on July 15. Fortunately for us we only lost two gas appliances and tossed out some junk that should have been tossed out long ago. We have had heat for two weeks now and finally got our hot water back two days ago. Sort of. Read our tale of woe!
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Whoa, great story and very cool new hardware...but horrible flashback to my 13 years in Idaho. I feel for 'ya, Peachy.

I remember when I first joined the USN back in 1956,

I was on a destroyer deployed to Japan. I was amazed at the devices that hung over the sinks in Japan that were a thin cabinet and whenever you turned the hot water on,
the tank had a gas pilot lite that started a burner and the hot water flowed from the tap in less than 15 seconds.

Real neat device and I thought that it was much more efficient than heating up 40 gallons of water 24hrs a day.

I don't think that electricity would heat water as fast but with the latest advancements in technology, probably a possibility now.

I saw the water heater devices in stores and homes in Japan. It even worked on a shower and the water was very comfortable temperature..

Oh, for those days...

I loved those types of water heaters when I was in Germany. I think typically you have one for the bathroom and one for the kitchen. I think I saw them in Home Depot but I don't think they would work well in a home designed for a water tank. I suppose the old hot water pipes could be abandoned and the new heaters spliced into the cold water lines in the various rooms. One would pay a higher cost initially, but a lot less in gas bills in the long run. If I ever have a house built, I'll probably have it designed for these.

Your old water heater looked almost as bad as the one I had when I moved into my house. Mine was already leaking at the relief valve where I see yours was already rusting. The guy that helped my find the house(buyers agent) gave me one to replace it with. Well, it took me a little over a year to get around to it and since I was barely getting by I had a friend help me install it. He maintained an appartment complex, so he was able legally and otherwise. Since the thing had been sitting outside a while, or maybe it was just this way when it was given to me, it was internally rusting and giving out brown water. I finally had the money two years ago and sprung for a new one. While draining the old rust bucket, more sludge than water came out. We sure are glad to have reliable and clean hot water ourselves. I do prefer my hot water to be independent of the electricity. After an ice storn in 2000, I was able to take warm showers in spite of having no electricity for over a week. Thank you, Army 90 degree flashlight.

I also hear you about codes. How many codes have I found out that my house is breaking? My next house will be inspected for the appropriate codes. When I had my air replaced, they had to replace the exhaust pipe as well. It was strapped to a 2x4 on the house on its way up to the ceiling.

Well, back to work

I see these advertised in the back of the Family Handyman magazine.
We keep thinking about getting one added under the master bathroom because it takes so long for hot water to reach the sink and shower. We have a ranch house and that bathroom is far away from the gas water heater. I hate wasting water.

Our water heater is 23 years old and so I have been very lucky but I hope never to be flooded.

Why does the phrase "Living on Borrowed Time" keep coming to mind when I read this

Something like THIS is a good investment.

The above is only one configuration. I've seen some that are totally mechanical, with a basin that fits under your heater with a float type valve system. When water raises the float, the water is automatically shut off.

glad to hear you got it working peachy i know its no pleasure to heat water for a bath . since when i was a boy we had to heat our bathwater downstairs on the wood stove and carry it upstairs to the tub .

and you also gave me a great idea since i live in a mobile home i have to remove a wall to get to my water heater which will soon need replacing . that on demand heater sounds like a great idea .

George, yes, these tankless water heaters are quite common in RVs these days. Just a note of caution, my particular model is not recommended for RVs though.

Oh lord that beings back the past--40-some years ago when I was in Germany these types of water heaters were being used and we loved them. As I recall you didn't have to leave them lit all the time, just when you wanted hot water, or maybe they were just turned way down. Certainly more efficient than the systems primarily in use here in the U.S.

I had them in Italy and Germany. Both were gas. They say we will be able to have gas here someday. If I could, I would switch or go for a solar system.